SB 1430 Summary

• Expands the definition of "common entity" to include parent companies, subsidiaries, affiliates, and entities with 10% or more ownership stakes, replacing the previous 40% threshold.

• Prohibits manufacturers, distributors, and importers from offering franchise agreements that exclude any existing or subsequent vehicle models of the line-make, and requires equal offering of bonus and incentive programs to all same line-make dealers unless justified by different economic or market conditions.

• Allows manufacturers and common entities to sell vehicle accessories, options, and upgrades remotely to consumers, provided the franchised dealer that originally sold the vehicle receives at least 25% of the gross price.

• Clarifies that franchise agreements remain in effect despite changes to motor vehicle distribution plans, rebadging, or changes to vehicles offered for sale.

• Strengthens restrictions on manufacturers, distributors, and their affiliates owning or operating competing dealerships, while allowing independent distributors that are not manufacturer-controlled to operate dealerships selling other line-makes.